It's also the natural end result of un- or under-regulated capitalism. The stable state of any market is a monopoly, where the market either starts as a monopoly or begins as a competitive field where the top competitor either purchases, merges with, or destroys all other competition. When you couple human greed with this system, you inevitably get wage depression at the bottom levels and inflation at the higher levels, as demonstrated quite well here in the US over the last decade.
I like your comment but I'm inclined to disagree. No corporation could ever hold a legitimate monopoly without the aid of government protectionism, i.e. regulated industries. For one company to hold 25% of any given market in a truly capitalist society would require tremendous amounts of skill and fiscal mastery. The only reason we have such large monstrosities in some American industries, oil, and pharmaceuticals, just to name a couple, is because the burden of regulatory compliance is far too high for smaller firms wanting to compete. It is common for corporations to beat the drum of government intrusion on one side and beg for more industry regulations on the other because it minimizes the need to be smart business operators and enables their sloth and greed. One more point and correct me if I'm wrong on this. Inflation and wage depression are not caused by a large wealth gap but by large debts and poor monetary policy, right? Inflation is historically a very common practice that governments use to reduce massive debt burdens. I think these are important distinctions to draw because if we are not careful, we might find ourselves staring at our own rotting flesh and begging for more of the poison that caused the disease in the first place. Your thoughts?
The first rule of intelligent tinkering is to save all the parts. -- Paul Erlich